LCMC Health Partners With The Resource Group

By 2-23-17

NEW ORLEANS – LCMC Health, a Louisiana-based, not-for-profit hospital system serving the healthcare needs of the Gulf Coast region, is partnering with The Resource Group to accelerate the transformation of its resource and supply management functions. The Resource Group leads the second largest and most efficient supply chain organization in healthcare delivery, focused on change management solutions and the end-user experience.

LCMC Health and The Resource Group will collaboratively implement The Resource Group’s innovative User-Directed Strategic Sourcing™ process, which delivers industry-leading savings, operational efficiencies, and end-user satisfaction to healthcare providers through integrated change management, operations and logistics, sourcing and contracting, analytics, and continuous process improvement, all to support the efficient and effective delivery of care to patients.

“As a large, non-profit health system, LCMC Health is committed to reducing costs and improving care,” Greg Feirn, chief executive officer of LCMC Health, said. “The Resource Group has proven results in reducing costs and will be integrated into LCMC Health’s supply chain efforts. We look forward to an extremely productive relationship with their team of experts.”

The Resource Group’s approach is tailored to the needs of healthcare providers by focusing on delivering sustainable cost reduction and minimizing capital investment, reps said.

“The Resource Group dismantled the traditional approach to healthcare supply chain and built the User-Directed Strategic Sourcing™ process, which starts by listening to the end-user to determine the necessary attributes of a product or service, contracting to meet these attributes with the best value, and delivering results through discipline, talent, processes, controls, and execution,” Scott Caldwell, president and CEO of The Resource Group, said. “Our 2,500 participants across the U.S. have realized 8–18 percent savings across all non-payroll spending categories through this process, and we look forward to delivering similar results at LCMC Health.”

Additionally, The Resource Group delivers savings on 90 percent of non-payroll spend, including supplies, purchased services, information technology, capital, and facility supplies through a strategic sourcing process that listens to and respects the needs of the end-user when managing choice and making decisions, reps said.

“We look at this partnership with The Resource Group as an opportunity for LCMC Health to accelerate its ability to greater control expenses, which will allow us to invest more in patient care,” James Ludwig, vice president, Supply Chain Management for LCMC Health, said.

While reducing non-payroll expenses is important for both LCMC Health and The Resource Group, supporting a culture of hospitality and end-user engagement is even more important, reps said.

“It’s remarkable that taking a simple ListenFirsti™ approach to serving the end-user has delivered our participants $1 billion in annual savings compared to their previous cost position with traditional group purchasing organizations,” Caldwell said.